If a firm goes bankrupt, the bondholders will get paid back before the stockholders get any money

If economic data reveals that inflation is rising, the Fed:

A. does not need to know the state of real GDP growth in order to justify increasing the growth rate of the money supply. B. may increase the growth rate of the money supply without really knowing the state of real GDP growth. C. may reduce the growth rate of the money supply without really knowing the state of real GDP growth. D. will also at that time know the state of real GDP growth and can respond accordingly.

Compared with other countries in the OECD, U.S. government spending relative to GDP is

A) among the highest. B) about average. C) slightly below average. D) among the lowest.